Multi-Color Corporation Announces Results for Third Quarter of Fiscal 2005

Friday, January 21, 2005

Press release from the issuing company

CINCINNATI, Jan. 20 -- Multi-Color Corporation today announced financial results for its fiscal third quarter ended December 31, 2004, compared to the same period a year ago.
Third-quarter highlights included:
Net Sales increased 2% to $33.7 million from $33.0 million. - Net Income increased 43% to $2.3 million from $1.6 million. - Earnings Per Share (EPS) were 35 cents per diluted share, up from
24 cents.
Frank Gerace, President and CEO of Multi-Color Corporation, attributed the Company's strong third quarter earnings principally to improved manufacturing performance at the Company's Decorating Solutions plants.
"Our performance in the third quarter is a direct result of the aggressive action we began a year ago to consolidate and increase efficiencies within our production facilities, including the transfer of our Las Vegas operations to Scottsburg, Indiana," Gerace noted. "While nearly all of the steps we initiated a year ago have been completed, we are continuing to pursue even greater operating enhancements under a new, highly motivated operations team."
As a result of those efforts, Multi-Color's gross profit improved 16% compared with the third quarter of fiscal 2004. The third quarter of 2004 included a $238,000 pre-tax impairment and closing charge related to the Las Vegas plant. Further improvements to income resulted from lower interest expense compared to the third quarter a year ago, as total debt declined $2.8 million.
The third quarter sales increase was concentrated in the Company's Decorating Solutions division. Sales from Packaging Services were flat for the quarter. "While our revenues have increased each quarter this fiscal year, the markets we serve have been difficult to predict with some markets enjoying significant growth while others remain soft," Gerace noted. "We are confident, however, that our overall growth rate will return to more traditional levels."
For the nine-month period ending December 31, 2004, Multi-Color had net sales of $94.2 million, compared with $93.7 million in the prior year. Net income increased 4% to $5.1 million, and diluted earnings per share were 77 cents, up from 75 cents in the first nine months of fiscal 2004.
"Our operating, marketing and financial teams worked very hard during the third quarter to complete initiatives that will make us stronger and more competitive in the future," Gerace said. "We have strengthened our management team with new talent in several key positions, brought a new gravure press fully on-line in Scottsburg, begun to implement a new enterprise-wide information system, and continued our exploration of strategic opportunities for growth within the packaging industry. We expect these achievements to pay off in stronger sales growth and continued earnings gains as the year progresses."